The consequences of the Kaldorian macroeconomic theory of distribution for economic theory and economic policy

The Kaldorian macroeconomic theory of distribution is more or less ignored in our science, despite it has, in the view of the author, substantial explanatory power for real economics. It is not only able to explain (for equilibrium and disequilibrium situations) the distribution of macroeconomic income on wage and profit earners through the structure of the goods usage of the national product. Even more important, it explains the adjustment of private savings to the demand for investible funds (private net investments, public deficit and current account balances) through changes in the distribution and the level of national income. The empirical facts support this statement. If this adjustment-mechanism of savings (distributional mechanism) is of major importance for real economic correlations, the traditional theory needs substantial modifications: Each level of national product has numerous of equilibria. The theory of interest and the crowding-out-theory are inadequate. Furthermore the nominal wage policy of the unions and the consolidation policy of the government runs a risk to harm employees and the whole society.